Majority Of ACA Customers Will Be Insulated From Dramatic Increases
Tax credits will help soften the blow for many of those buying plans on the federal exchanges, policy experts say. Meanwhile, both sides of the aisle react to the news of the premium spikes, Aetna's CEO says part of the problem is young people would rather buy a beer on a Friday night than pay for health care coverage and The Associated Press offers a Q&A on the spikes.
Modern Healthcare:
Double-Digit Premium Hikes Unlikely To Affect Most Obamacare Shoppers
The fourth open enrollment kicks off Nov. 1 and will run for three months. The latest HHS report released this week shows the average benchmark plan premium in 2017 will be $302, compared with $242 in 2016. HHS uses the second-lowest cost silver premium for a 27-year-old before tax credits as its benchmark. It's the most popular plan on the exchanges and the one used to calculate premium subsidies. Premium hikes varied widely across the 39 states using the federal HealthCare.gov exchange. Arizona will experience the largest average increase for the benchmark plan at 116%, HHS said. Benchmark plan premiums will rise 69% on average in Oklahoma and 63% in Tennessee. At the same time, benchmark premiums in some states, including Arkansas, Indiana and Ohio, will increase only slightly or even decrease in 2017. (Livingston, 10/25)
Bloomberg:
Aetna CEO Says Young People Pick Weekend Beer Over Obamacare
Healthier people will avoid buying Affordable Care Act health insurance plans as premiums climb, threatening the stability of the market, Aetna Inc. Chief Executive Officer Mark Bertolini said.“ As the rates rise, the healthier people pull out because the out-of-pocket costs aren’t worth it,” Bertolini said at Bloomberg’s The Year Ahead Summit in New York. “Young people can do the math. Gas for the car, beer on Fridays and Saturdays, health insurance. ”Premiums for health plans sold to individuals under the ACA, known as Obamacare, are going up by about 25 percent on average for next year. Bertolini said that as costs rise, more individuals will decide not to buy health plans. (Tracer and Dogerty, 10/25)
The Hill:
Dems Come To ObamaCare's Defense After Premium Hikes
Democrats came to the defense of ObamaCare on Tuesday, amid Republican attacks over premium increases. White House Press Secretary Josh Earnest and former President Bill Clinton both stood up for the healthcare law, while also noting there are areas that need to be fixed. Democratic presidential nominee Hillary Clinton, however, did not mention ObamaCare at her only scheduled campaign rally of the day, choosing not to address the issue as she stumped in Coconut Creek, Fla. (Sullivan, 10/25)
The Hill:
GOP Wants New Numbers On ObamaCare Subsidies After Premium Hikes
Republicans in Congress are wary of a potentially steep increase in the cost of ObamaCare, and they want a fresh tally of how much the government will be spending on subsidies after insurance premium prices rise by double digits. The GOP leaders of the House Energy and Commerce Committee are asking the Obama administration for new numbers on the healthcare law’s subsidies after it confirmed Monday that premiums would increase by an average of 25 percent across the country next year. That’s more than three times last year’s increase. (Ferris, 10/25)
The Associated Press:
Q&A: New Sign-Up Season; New Woes For Obama Health Law
President Barack Obama is leaving the White House in a few months, but the troubles of his signature health care law continue to make headlines. With premiums rising by double digits and many consumers scrambling to replace coverage because their insurer bailed out, the 2017 sign-up season that starts Nov. 1 looks challenging. Obama says it's just "growing pains" but critics see the threat of market collapse, a death spiral. Here are some questions and answers for consumers ahead of the law's fourth open enrollment season. (10/26)